A lot of people are looking into pellet stoves these days as a way to save money on their heating bills. But one question that a lot of people have is whether or not a pellet stove will increase their homeowner’s insurance rates.
A pellet stove is a stove that burns compressed wood or biomass pellets to create heat. Pellet stoves are usually more efficient than traditional wood-burning stoves, and they produce less pollution. Because of these reasons, pellet stoves have become increasingly popular in recent years.
Will a Pellet Stove Increase My Homeowners Insurance Rates?
The answer to this question is maybe. It depends on your insurance company and your individual policy. Some insurance companies may consider a pellet stove to be an “increased risk” and charge higher rates for coverage, while others may not consider it to be any different than a regular wood-burning stove.
As always, it’s important to check with your individual insurance company to see what their policy is on pellet stoves. That way, you’ll know for sure whether or not your rates will go up if you decide to install one in your home.
Wood-Burning and Pellet Stoves
Typically, if you have a wood-burning or pellet stove in your home, your premiums will go up slightly. Wood stoves are usually more expensive to insure than pellet stoves because they cause far more residential fires. That said, the amount you’ll pay in increased premiums is usually not significant. In most cases, it’s less than $100 per year.
The Reason for the Increase
The main reason why having a wood or pellet stove affects your homeowners insurance rates is that these types of stoves present an increased risk of fire. While modern pellet stoves are designed to be safe, they still pose more of a risk than houses that don’t have any type of stove. As such, you can expect to pay a little bit more for your coverage.
Homeowners Insurance for a Wood Stove vs. Pellet Stove
For those who heat their homes with a wood stove or pellet stove, it is important to be aware of the code requirements for installation and insurance coverage.
Code Requirements for Installation
When installing a wood stove or pellet stove, it is important to follow all local code requirements. Most codes require that the unit be installed by a qualified professional. In addition, there are typically clearance requirements for the distance between the unit and any combustible materials. Be sure to check with your local building department for specific code requirements in your area.
Obtaining Clearance from Your Insurance Company
In order to obtain coverage for your wood stove or pellet stove under your homeowner’s insurance policy, you will need to obtain clearance from your insurance company. This usually involves providing the insurance company with a copy of the manufacturer’s installation instructions, as well as a copy of the permit from the local building department (if required).
Once the insurance company has reviewed these items and determined that the unit has been installed in accordance with all applicable code requirements, they will issue a certificate of insurance which should be kept on file in case you ever need to make a claim.
What type of Coverage You Can Expect from Your Homeowners’ Insurance Policy?
As long as you have obtained clearance from your insurance company, you should be able to obtain coverage for damages caused by your wood stove or pellet stove under your standard homeowner’s insurance policy.
This includes coverage for damages caused by fire, smoke, and water (from firefighting efforts). It is important to note that most homeowner’s insurance policies have limits on the amount of coverage available for damages caused by appliances, so be sure to check with your agent to make sure you have adequate coverage.
Is a Pellet Stove Worth It?
Whether or not a pellet stove is worth the extra cost of insurance is a decision that you’ll have to make for yourself. These days, there are many different types of stoves on the market, so you’ll need to do some research to find one that’s right for your needs. Once you’ve found the perfect stove, you can then compare the cost of insurance to determine whether or not it’s worth it for you.
In Conclusion
Pellet stoves are becoming increasingly popular as a way to save money on heating bills. But before you install one in your home, you need to know how it will affect your homeowner’s insurance rates.
Some insurance companies may consider a pellet stove to be an increased risk and charge higher rates for coverage, so it’s important to check with your insurer to find out their policy on pellet stoves. Once you know that, you can decide whether or not a pellet stove is right for you.